A visibly shaken Larimer County Sheriff Jim Alderden, giving a press conference on the "Balloon Boy" story, has announced that the entire story was indeed a hoax. Criminal charges are expected to be filed shortly.
Here's a clip of the press conference, wherein Alderden describes the "a-ha moment" he experienced after watching the Heene family's interview with Wolf Blitzer, wherein little Falcon uttered his now-infamous line, "We did this for the show."
Later in the press conference, Alderden announced the following possible charges:
Contributing to the delinquency of a minor (Class 4 felony)
False reporting to authorities (Class 3 Misdemeanor)
Attempting to influence a public servant (Class 4 Felony)
The FBI and FAA will also be contacted to determine whether or not Federal charges apply, Alderden says, and the state is considering seeking restitution for the manhours, costs, and resources taken up by the elaborate scheme. At one point, Alderden also mentioned that Richard and Mayumi Heene met in Los Angeles, at acting school. "They put on a very good show for us, and we bought it."
Update: Alderden says the scheme was planned for approximately 2 weeks, and was a set-up, as many suspected, to gain publicity and help the family secure a reality show. He also says the Sheriff's department has not contacted Robert Thomas, the man who gave an exclusive interview to Gawker yesterday about planning a hoax with Heene, but that they are aware of him and are interested in speaking with him.